Normally following such an intense down day like yesterday, we would see somewhat of a quiet nowhere day. Today we had a fast and grinding rally right into one of our favorite resistance points.
This brings me to the headline and what it means.
Some of you are familiar with Leonardo Fibonacci. (Real Name: Leonardo Bonacci) While he was certainly not the creator of the Fibonacci number or Fibonacci sequence, but he was a famous mathematician and did make the method famous.
Well, today those Fibonacci retracement numbers came right into play on the SPY. (See tonight’s video for pretty pictures)
The rally took us right into the .382% retracement of the most recent high to low.
Just because the market came into this retracement level today, doesn’t mean it has to go right back down or even down at all from here. There are other numbers, patterns and length of time to consider.
Of course the rally wasn’t that unexpected since yesterday we discussed how close we were to our first downside target. We didn’t get there [yet] before the oversold condition forced a reversal.
The Gold market remains at a very critical juncture as of today’s close. Members received an update this afternoon with my current thoughts about how to handle the trade and where we go from here.
Crude Oil moved higher along with the market, but stopped at a very important place. (See video to find out why)